ED’s big action on WazirX, Rs 65 crore seized
Freeze crypto assets worth over Rs 100 crore
According to the Times of India reports, the ED has been told that “When the proceedings were initiated by the police and the ED, such loan app companies have used cryptocurrency to withdraw money out of the country. The transaction is done through Wazirex and the money has been transferred to Hong Kong. We have found evidence of money transfer in crypto assets. Freeze WazirX’s crypto assets worth over Rs 100 crore.”
show cause notice issued
The ED is probing two cases against WazirX under the provisions of the Foreign Exchange Management Act, 1999 (FEMA). He added that Zanmai Labs was using Binance’s boundary wall infrastructure. The Finance Ministry further stated that not all crypto transactions between these two exchanges were being recorded in the blockchain. That is why a show cause notice (SCN) has been issued against Wazirex.
Exchange crypto from third-party exchanges to each other
The Ministry of Finance said that WazirX has allowed requests from international users to convert one crypto to another using transfers from third-party exchanges such as FTX, Binance, etc.
